NZD/USD is expected to trade in lower range. Technically, the pair is still consolidating below its key resistance at 0.6640, and is likely to challenge it in sight, as the relative strength index is turning up, calling for a technical rebound. Nevertheless, the upside room is expected to be limited by 0.6640, as the 50-period moving average is still negative, which indicates that the prices may still have the downside potential to go. To sum up, below 0.6640 look for a new drop to 0.6540 and 0.6500 in extension.
Trading recommendations:
The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 0.6540. A break of this target will move the pair further downwards to 0.65. The pivot point stands at 0.6640. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 0.6680 and the second target at 0.6725.
Resistance levels: 0.6680, 0.6725, 0.6765
Support levels: 0.6540,0.65, 0.6465
The material has been provided by InstaForex Company - www.instaforex.com